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Tesco PLC (OTCPK:TSCDY)
Selling, General, & Admin. Expense
$2,752 Mil (TTM As of Feb. 2014)

Selling, general, & admin. expense (SGA) includes the direct and indirect costs and all general and administrative expenses of a company. Tesco PLC's selling, general, & admin. expense for the six months ended in Feb. 2014 was $1,390 Mil. Its selling, general, & admin. expense for the trailing twelve months (TTM) ended in Feb. 2014 was $2,752 Mil.


Definition

Selling, General, & Admin. Expense (SGA) includes the direct and indirect costs and all general and administrative expenses of a company. For instance, personnel cost, advertising, rent, communication costs are all part of SGA.

For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Tesco PLC Selling, General, & Admin. Expense for the trailing twelve months (TTM) ended in Feb. 2014 was $2,752 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

An efficient operation keeps SGA costs low and thus has higher profit margin. The percentage of SGA relative to total revenue is an indication of how efficiently the company operates. Compare this percentage among the companies in the same industry is a good way of finding more efficient operations. A comparison of the SGA cost relative to the revenue with the historical value can also be an indication of how efficient the company has become.

Warren Buffett likes companies with consistent SGA as the percentage of gross profit.

Companies with no durable competitive advantage show wild variation in SG&A as % of Gross Profit.

If SGA is less than 30% of Gross Profit, it is fantastic. If SGA is nearing 100%, it is is in highly competitive industry.


Related Terms

Gross Profit, Cost of Goods Sold


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Tesco PLC Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
SG&A 00000002,5742,2352,752

Tesco PLC Semi-Annual Data

Aug09Feb10Aug10Feb11Aug11Feb12Aug12Feb13Aug13Feb14
SG&A 811-748969-1,0031,23001,1561,1541,3041,390
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